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#corporate-law#ontario
Added: 2 months ago

How can I separate my personal assets from my real estate company where I'm a director, in case of any legal liability?

If I am the director of an incorporated company that owns a building and the company is also the landlord can any legal cases be brought against me personally from the landlord and tenant board and also normal courts? If… (Read more)


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Samuel Michaels

Founder & Lawyer, SM Legal


To answer your question, in general there is no way to completely avoid liability in the Canadian legal system. Firstly, criminal liability is always a possibility if someone commits a criminal act. Secondly, negligence on the part of a corporation can be traced back to officers and directors through what is called "director's liability". In terms of setups that lessen the risk of liability, incorporation is certainly helpful. It is possible for you to structure your corporation to minimize your involvement; however, if a shareholder retains control that will increase their risk of liability overall. In general, I would recommend for you to act lawfully regardless of whether it is as an individual or through your corporation. Though incorporating offers significant protection, it will never be a "sure thing" in terms of liability, there will always be some, even minimal, risk. I suggest you take a look at the following Canada Legal Help blog: http://canadalegalhelp.com/limited-liability-demystified/ I hope this will help answer your questions!


Answered: 2 months ago